Q4 2020 RPT Realty Earnings Call
Greetings and welcome to the RPT Realty fourth quarter 2020 earnings Conference call. At this time, all participants are in a listen only mode and question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad as it from.
Mind you This conference is being recorded.
It's now my pleasure to introduce your host Vin Chao Senior Vice President of Finance. Thank you you may begin.
Good morning, and thank you for joining us for Rpt's fourth quarter 2020 earnings Conference call.
At this time management would like me to inform you that certain statements made during this conference call, which are not historical maybe deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Additionally statements made during the call are made as of the date of this call listeners to any replay should understand that the passage of time by itself will diminish the quality of the statements made.
Although we believe that the expectations reflected in any forward looking statements are based on reasonable assumptions and factors and risks could cause actual results to differ from expectations.
Certain of these factors are described as risk factors and our annual report on form 10-K for the fiscal year ended December 31, 2019, and quarterly report on form 10-Q for the third quarter of 2020, and and our earnings release for the fourth quarter of 2020.
Certain of these statements made on today's call also involve involve non-GAAP financial measures listeners are directed to our third quarter and fourth quarter press releases and our fourth quarter supplement which includes definitions of those non-GAAP measures and reconciliations to the nearest GAAP measures and which are available on our website and the investor section.
I would now like to turn the call over to President and CEO, Brian Harper and CFO, Mike Fitzmaurice for their opening remarks, after which we will open the call for questions.
Good morning, and thank you for joining our fourth quarter 2020 and conference call.
And I Hope you and your families are all well.
2020 will be a year not soon forgotten.
The health and economic impacts from COVID-19 have been unprecedented.
Add to this the social and political unrest our country has experienced and 2020 will no doubt go down as one of the most historic and difficult years and our lifetime.
While the issues facing and the open Air shopping center REIT are small in comparison to 2000 twenty's broader challenges.
I am proud of Rpt's response, and execution this past year.
Yeah.
From our tenant assistance program and charitable donations to our property level of safety and curbside pickup for net pickup initiatives RPT demonstrated its commitment to our purpose of turning commercial ground into common ground.
We also took swift and decisive actions to shore up our liquidity and preserve our access to capital, but our first time investment grade credit rating from Fitch.
In addition, I was very pleased with the team's tireless effort and pursuit of rent collections, which improved to 91% and the fourth quarter.
Following the payoff of our remaining $100 million balance on our revolver, we have over $100 million of cash and a fully and.
Undrawn $350 million revolver and are now positioned to take full advantage of our unique and valuable partnership with GIC and.
And opportunistically execute and our external growth plans.
We continue to track a healthy pipeline of acquisitions and started to see some improvement and activity in recent weeks.
Let me just reemphasize that the underlying real estate is the primary driver of our acquisition strategy.
But we then look for is growth.
That could come and a variety of ways from under market rents and mismanaged assets to redevelopment opportunities.
And it could also come in a variety of different retail formats from grocery anchored lifestyle centers power centers to community centers.
As previously reported we had five deals and our GIC venture either signed or in negotiations and February of 2020.
Once the pandemic hit we and our partners made the decision to get out of all of them.
We are now fortunate to have the liquidity and the deep pipeline within our core markets and believe the widening valued GAAP between property types tenant categories and markets.
Is creating differentiated opportunities that we hope to take advantage of and 2021.
One thing we pride ourselves on is skating to where the puck is going not to where it's been.
Last year, we entered the Austin market with our off market acquisitions of Lake Hills Plaza.
Sensor acquisition Tesla announced a new $1 1 billion dollar Assembly plant, Google Oracle and digital Realty and to name a few.
Each announced relocation or expansion plans to Austin.
And bar shopping malls announced plans for a new $1 billion mixed use development directly across the highway from a property.
There's been a little over a year since our acquisition, we are more convinced than ever about this dynamic market.
That truly represents where the puck is going.
From a leasing perspective, we continue to make good progress and our grocery and negotiations and are also and negotiations with tenant categories, such as home improvement wholesale club stores off price GSR and medical use tenants.
This quarter, we signed a total of 120000 square feet up 10% year over year.
Notably signings this quarter included two new deals for the modern tech enabled health care provider.
These deals exemplify our enhanced focus on health and wellness tenants.
We also have good activity on the two Stein Mart boxes that we took back in the quarter, where we have an opportunity to significantly improve the tenancies.
Of both boxes.
And under 11, and 50 of ABR per square foot. We also see a solid mark to market opportunity upon the release of these spaces.
And one Stein Mart box is already and lease and the other has multiple L. O I's that are being negotiated with some very strong national brands.
We ended the fourth quarter with assigned but not opened backlog of $3 2 million up from 3 million last quarter.
We are currently traveling and roughly $2 million of ABR that is currently in lease negotiation up from about $1 5 million last quarter.
Giving us some visibility and offsets to potential future fallout.
Our leasing pipeline is robust.
And we are encourage by the impact it will have on our future cash flows.
Additionally, we have a number of re merchandising opportunities that we're pursuing that are listed in our supplement.
These 11 projects consist of re demise and expanding or combining spaces similar to the 18th targeted re merchandising opportunities that we completed and 2019.
As we did on those projects, we expect to earn attractive returns on our capital of high single to low double digits and this next set of deals.
Despite the end of year increase and reported Covid cases are suburban portfolio was less impacted by additional lockdown measures taken since this summer.
94 per cent of our portfolio by ABR remains open.
Unchanged from last quarter with 4% of our closure is tied to our theaters.
The reopening of our theaters remains fluid.
Our exposure is almost entirely tied to Regal, whose parent company Cineworld recently obtained additional financing they expect to provide liquidity through 2021 and beyond.
Which is a positive milestone for this tenant.
Before I turn the call over to Mike I want it and my remarks with some thoughts on our reinstated dividend, but we continue to place a high premium on our cheapest source of capital retained cash flows. We can we understand how important the dividend is that's a component of our total return to shareholders.
With that in mind, we established a seven and a half cent per share common dividend for the first quarter 2021.
Quarterly rate reflects a purposeful analysis of our expected taxable income and our liquidity needs.
We believe that new rate is sustainable and can be grown in conjunction with earnings.
While allowing us to preserve cash.
To support our growth opportunities.
And providing sufficient cushion to weather periodic future downturns.
With that I will turn the call over to Mike.
Thanks, Brian and good morning, everyone.
Today, I will discuss our fourth quarter results, our strong balance sheet and liquidity position and and with commentary to help everyone understand our expectations and how our business will trend in 'twenty and 'twenty one.
Fourth quarter operating <unk> per share of <unk> 18 cents was consistent with last quarter and again largely driven by rent not probable of collection that I was referred to as bad debt throughout my prepared remarks for simplicity.
For the fourth quarter, our bad debt and abatements for for $4 million about the same as the third quarter, we reserved about 89% of our uncollected fourth quarter recurring billings and leaving limited downside from these categories relative to our fourth quarter run rates and.
As of year, and $18 1 million of recurring billings for the period of April through December 2020 remain outstanding of which $11 9 million had been reserved we expect most of the unreserved amount of $6 2 million to be paid back over the course of 2021 and 2022.
We continue to be quite pleased with the resiliency of our portfolio and our limited bankruptcy exposure and their lease rate of 92, 8% held up well and the quarter down just 50 basis points sequentially, primarily driven by the recapture of our to Stein Mart leases that I noted last quarter blended.
Blended rent spreads for the quarter remained positive and three 4% impacted by a few flat strategic renewals also it's important to note that the releasing spread is just one factor and the organic growth profile. The other factor that we heavily weigh and lease negotiations are the annual contractual rent increases the leases that we signed during the quarter annual.
Contractual rent increases were about 150 basis points, which is a key contributor to creating a long term sustainable NOI growth profile.
And as we've noted consistently we expect some volatility and our quarterly statistics, given the size of our portfolio, but see a continued mark to market opportunity as we cycled legacy leases over the next few years and as Brian noted in his remarks regarding dividend policy, we have placed a premium on free cash flow, allowing us to use.
<unk>, our cheapest form of capital to take advantage of these opportunities as we re stabilize our portfolio to pre COVID-19 and lease rate levels of nearly 95 per cent.
We were very pleased with our first ever investment grade credit rating from Fitch, highlighting our balance sheet strength and flexibility coupled this distinction with and increased confidence and our business and in our access to low cost debt capital, we no longer felt the need to maintain and outsized cash balance and repay the remaining room.
For balance of $100 million last week, we will also continue to mine our portfolio for additional capital raising opportunities to further bolster our liquidity position and fuel our external growth plans.
We ended the fourth quarter with trailing 12 month net debt to pro forma adjusted EBITDA of 7.4 times up slightly from 7.2 times last quarter as another COVID-19 impacted quarter entered the calculation.
We remain committed to bringing leverage into our long term target range of five and a half the sixth and at times and expect to see steady improvement and EBITDA as we return to more normalized and reserve levels.
And as our signed leasing backlog begins to kick in over the course of 'twenty 'twenty one.
We are establishing 'twenty 'twenty, one operating <unk> per share guidance of 77 to 87 cents, which is an expected improvement.
Proven over the annualized 2024th quarter operating <unk> per share of <unk> 72 cents.
Key drivers from there are favorable impact of <unk> <unk> from interest expense, primarily due to the repayment of our revolving line of credit and <unk> from our signed not open backlog that we expect the vast majority to open ratably in 'twenty and 'twenty one.
Further upside is based on favorable bad debt reserves, which we expect to be heavily influenced by the reopening of our theaters, which is a function of the trajectory of the vaccine rollout and movie productions.
Our assumption is that these circumstances will improve over the course of 'twenty. One we felt establishing a wider range was appropriate given the potential very and outcomes for our theater exposure, which would represent about 10 per share of earnings if our theaters remain closed and you do not pay their contract for rent, our operating and <unk> could be at the low end of the range and Conversely, if it.
Our open and pain, we should be near the high and all else equal is.
It is important to note that our guidance does not include the net impact of changes to 'twenty and 'twenty estimates for bad debt and straight line rent and reserves also while acquisitions are not assumed in our guidance range, we intend to redeploy $100 million of cash on the balance sheet and two opportunistic acquisitions that meet our strict underwriting standards representing upside to our rate.
<unk>.
While the near term Covid trajectory remains uncertain, we are cautiously optimistic that the worst is now behind us and.
As we move closer to a more normalized environment and given the conflicting impacts a permanent move outs and rent collection statistics, we hope to return our focus to more traditional measures of operating performance like occupancy rent spreads and same property NOI growth as part of our ongoing efforts to improve our disclosures. This quarter, we added a net add.
Net value page to our supplemental on page 14 to help facilitate your analysis of our real estate value and.
And with that I'll turn the call back to the operator to open the line for questions operator.
Thank you we will now be conducting the question and answer session. If you would like to ask a question. Please press star one on your telephone keypad and confirmation tone will indicate that your line is and the question queue. You May press star two and if he would like to remove your question from the queue for.
And for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys. One moment. Please let me call for questions.
Our first question is coming from the line of Derrick Johnson with Deutsche Bank. Please proceed with your question.
Hi, Hi, good morning, everybody can we get a deeper update on external growth.
Specifically, what are you seeing and private market pricing also script investor appetite and then secondly, you know we're in a new year here. What are you, hoping to add coffee property profile wise or market wise, and then whats the mix between on balance sheet.
Vs additions to the GIC JV and any reason you guys didn't give acquisition guidance since it's such a big part of the story.
Yeah, Hi, Derek Let me, let me hit the first update you on what we're seeing from acquisitions and obviously a lot of deals did not trade and 2020.
And certainly a lot of deals north of $50 million and net retail ecosystem Didnt trade.
I've seen a lot of loosening up from that perspective, and that's from private individuals that's from larger private companies and.
And that's from institutions.
And I'll say largely we're not much of a mark on marketed deal buyer. We liked the true off market, we have been sourcing the deals for over this past year.
And really as I said in my prepared remarks.
Got a huge pipeline pre pandemic of $700 million with five deals under contract in February that we bowed out.
I think the important thing that I want to put framework around is we're a bottom up IRR company.
And we're here to drive value and achieve the highest risk adjusted returns.
And I do want to emphasize and this goes into are not providing guidance.
We will continue to be disciplined and patient.
There's obviously a lot of uncertainty and and we are extremely disciplined on our underwriting.
And don't want to do this core did a quarter guidance of acquisitions.
And as opposed to providing a full year for your guidance.
I think the mix of balance sheet.
War versus GIC will be mixed and Theres a lot of arbitrage to be had and a lot of property types that might be.
You know, maybe too frothy and some might have opportunities to have that value add and risk adjusted return.
So we see that as a blender really good blend of both balance sheet and GIC.
And I can't emphasize just the partnership with GIC, they've been nothing but terrific. We're talking all the time and they are bringing us opportunities as obviously, we're bringing them opportunities.
Yeah.
Okay no. Thank you Brian very insightful.
And can we talk a bit about tenant demand and how do you feel about current leasing activity and where you know where is your pipeline now versus pre Covid I know you've shared and the opening remarks, you know where it was versus last quarter, but how about versus pre COVID-19 and and then secondly, you know how.
How could you describe your portfolio wide mark to market opportunity given the leasing demand you see today.
Yeah. Thanks.
You know statistically I would say, we're not quite back to 100% other inquiries and tours.
And that was that we were seeing pre pandemic. Some companies are not flying at both from the retailers, but it's improved dramatically over the last two quarters.
And we feel you know qual.
Qualitatively you know the activity were seeing feels more transactional with more genuine interest and a higher conversion rate with tenants. We are in and dialogue now with as opposed to you know even last quarter and a quarter before I do think our suburban portfolio.
With grocers and high volume off price tenants are mixed with the good geography demos etcetera is driving demand and theres always going to be a flight to quality and as you've heard from me even pre COVID-19 there was a flight from malls and.
And.
That's something we continue to see a lot more of and.
And as we've been strict with not just filling up spaces is curating, the right merchandising mix and really staying true to service and essential businesses.
What that mall interest is it's creating friction and the market.
And that helps drive spreads that helps drive a competing tenants to you know to higher rents.
So I've been very very pleased with the results from leasing I mean, it's a very healthy backlog of SNL of $3 2 million today with a million eight in lease negotiations with.
A lot behind that and call it L O i's or proposals or advanced negotiations.
So yeah, I mean from a coming out of a pandemic and really looking at our 2019 levels of SNL.
And that led to a sector, leading for 1% NOI growth I'm, feeling extremely place and Eric from a mark to market perspective, and the rest of our portfolio. We've only about cycled through about 30% of a portfolio since we've been here.
And since mid 2018, we still do see a significant opportunity there over.
Over the last.
12 months or so are new releasing spreads have about 20 and about 20% on a blended basis and we do see that number continuing over time.
As we continue to cycle through.
Remaining part of the portfolio and just from a leasing volume perspective as well.
To answer your question straight on and we do expect from a deal count perspective for new leases to be up about 50% relative to 19 or I'm, sorry relative to 'twenty, which is on par with what we did in 2019 and and.
And Derik, one more thing to just to bring into the into the weeds, which I'd like to do is just to give you. Some more context of some legacy leases, we have and we have a huge huge push on this grocer initiatives and and what we're now seeing two from home improvement and wholesale clubs are really to bring that essential mix into and to the cash flows.
We have two legacy leases that expire that were expiring in two years, we were proactive on.
With them, we are finalizing a lease that is out for signature today with a first to market major grocery.
That grow share deal over the prior legacy leases was a 66% spread.
Like that is the opportunity within this portfolio.
And I can say, that's a power center.
So that's a huge value creation not only from isolating the deal by itself, but the cap rate.
Compression and the overall deal valuation.
So we're seeing that across the board.
Thank you thank you, Brian and Mike.
Thanks, Thanks there.
Thank you. Our next question is coming from the line of Todd Thomas with Keybanc Capital markets. Please proceed with your question.
Hi, good morning.
I just wanted to circle back first to.
To the acquisitions and I guess, the GIC venture specifically can you just remind us how investments were to be split between RPT and the venture and and have the parameters changed at all.
For the for the venture of the scope of what you know the the other joint ventures willing to buy relative to to RPT.
Yeah, I mean, I think I think first and foremost it's a partnership and.
And we're talking more now than we ever have and even prior to COVID-19.
And we're talking a lot and again, it's it's it's an unbelievable partnership where I couldn't be happier.
And the the really the debenture was set up to really focus on grocery centers.
Have a ROFO for any grocery center over $25 million and the top 75 Msas.
With that said.
Would they look at other asset types within the retail world Yes.
And and and I'm, not saying, that's something we wouldn't do but it's something that we're being very mindful of is obviously the balance sheet.
You know growing that as well S. S S. Our relationship with GIC.
Okay and going forward, we'll do you do you anticipate.
Well the venture primarily be structured the same as it was when it was initially formed you know with your share being 51 and a half per center.
Is that expected to potentially change for for future investments here we're.
And we're looking at a lot of options I mean, I think the thing that I that we love with them is theres just great flexibility.
So it's.
And obviously there is.
Looking at it from a lens of single assets or small portfolio to large portfolios.
Which would maybe be a little less of an ownership interest. So there's just and I love about them.
Is their global reach their strategic mines.
But also their flexibility towards the partnership.
Okay, and and and Mike I think you said the guidance does not include acquisitions, but there's an expectation that.
The $100 million of cash on the balance sheet will be deployed during the year is is that right and then are there any asset sales being contemplated or you're looking to monetize any properties and 2021, potentially some some parcels or or individual assets.
Another good question, Todd and I know, there's and there's no transactions embedded into our guidance range on the disposition front.
Nor the acquisition front and so if we were to go out which is our intention.
And to redeploy the 100 million and two acquisitions, that's going to be upside and.
And two are to a range of 77 to 87.
Okay, and and you do expect to deploy $100 million during 'twenty one.
Is that right.
At this point of time he has the biggest variant right. So that's why we're a bit hasn't said and put it within the guidance ranges given the pandemic that were still currently experiencing but if I had if other guy so I would say that for 100 and redeployed and second half for this year.
Okay, and and are there any asset sales being contemplated at all.
No.
Okay alright, thank you.
Thank you. Our next question is coming from the line of Craig Schmidt with Bank of America. Please proceed with your question.
Great. Thank you regarding the new groceries that youre looking at are they looking at taking new space like converting parking lots or are they replacing our existing space.
Hey, Craig.
These would be all taking existing space, we don't have any grocers.
Doing ground up and.
And the parking lot so what I love about this is just huge value.
And your creation and Ben I would say the majority of these crushers are would be taking.
Space within power centers.
They want simply the best in class Grocers, which you can count on one hand, they want the best real estate and they do they don't mind, if it's replacing.
Former grocer to a power center.
Two.
You know potentially a freestanding location.
And are you able to raise rent.
And in the examples you working on yes.
Yeah. So the example, I gave you where we have a deal.
Out for signature.
And one of our core markets.
And these were legacy leases of two tenants for <unk>.
And binding and those two spaces for this first to market major grocery.
That's spread Craig is 66 per cent.
And how and I.
And I guess, you did two strategic deals and and <unk>.
Fourth quarter that would kind of low debt.
Leasing spreads do you think at the end of the road, you'll be closer to your high single digit low digit low double digit rate.
Yeah, I would think that I mean, it's I think and this is a it's always tough to track spreads quarter to quarter, and we had obviously monster spreads last quarter and this this the spreads were moderate and really were.
Dragged down by a couple of strategic deals that we did on our portfolio with a tenant where we just thought it was best to renew and short term flat as to as to take the vacancy.
So yeah that would be my.
My guess.
Yes, right now off of.
And of that high single low double digits.
Thank you.
Yes. Thank you.
Yeah.
Thank you. Our next question is coming from the line of Floris Van <unk> with Compass point. Please proceed with your question.
Thanks, guys. Thank you for taking my question.
Maybe if you could talk a little bit about Brian you're you're always talking about iron ore driven what are the spreads investing opportunities you have in your portfolio and and how much potential ground rents could you do you have and in the portfolio that you could harvest and and and read it.
Ploy into either redevelopment or or you or new acquisitions.
Yeah. Thanks for so so we did update our re merchandising opportunities and our Sop that list is long and there is a deeper lists.
Behind that where.
Where I like this is we were we were averaging call. It mid double digit yields when we inherited 20 boxes. When we first came over to other company.
We see that same.
Opportunity.
With these identified and identified cases that.
And that we listed and the Sop.
And those range from you know infill Miami real estate opportunities, where maybe it's a wholesale or home improvement add on.
Which will obviously have huge cap rate compression, but also allow a lot of tailwind leasing to occur to that the asset that I was just referring to and one of our core markets. The groceries grocery deal of putting that into a power center, replacing two tenants.
And that's a 66% lease spread.
To even the town and country Center and.
And St. Louis whole foods target home goods and we have for active LOI is going with best in class retailers, where there is massive demand so.
So we've been sharp shooting and we've been working on this for a while we've been proactive with the Stein Mart boxes. For example, one is already and leaves the other one and St. Louis will probably be and lease soon as we come to conclusions on those L O I's.
So we're seeing we're seeing this great demand and and great, especially from the junior boxes.
And Mike do you want to touch upon the ground leases yeah. So the ground lease NOI that we have and the portfolio today for us is about $10 million or so.
And you ascribe a cap rate and the mid single digits for your 200 million of value, so reinvest and that and these re leasing opportunities that Brian just touched on it could be very very accretive for the company and then in addition to that if we wanted to redeploy those into acquisitions and Theres, a nice spread there as well.
It's a good optionality.
Yeah. So it was around $10 million. So that's that's a you know.
Meaningful and for a company your size and maybe.
And maybe could you also comment on the on the leasing costs that you had this past quarter. Obviously they were they are probably some one offs in here, but you know the $75 million 75 per square foot T is was about 50.
And 50% higher than what you've average for the year.
How is that going to trend going forward.
It was high it was heightened on one deal. It's a it was a five below deal where we had a little bit of extra landlord work combining two spaces you take that deal often and it was 44 Bucks a square foot. So we see that as more of a moderate range.
And of.
Of Ti is going forward.
Great. Thanks, that's it for me guys.
And of course.
Thank you. Our next question is coming from the line of Mike Mueller with Jpmorgan. Please proceed with your question.
Yes, hi.
And I guess looking at the seven five cent dividend for the first quarter was that set by the board by looking at taxable net for the first quarter or is that based more on for your view, where you're expecting that dividend to be kind of constant throughout the year and then growth in future years.
And then just based on and.
Full year.
And I can say.
We said it really with obviously improved visibility and confidence and the cash flows are.
Where we really want to primarily focus on retaining our cheapest form of capital.
Especially in light of all of that huge upside with the re merchandising opportunities that I've been talking about throughout this call and upside and our small shop occupancy.
I think bally.
Balanced that with the approach of setting a competitive dividend.
Laos us to grow it comfortably.
And even a no growth environment.
And we really set a total level, where we're retaining as much cash as we can.
For accretive.
Leasing and re merchandising opportunities.
And they get those double digit returns.
So you know it will grow commensurate with our earnings and it really boils down to earnings growth and acquisitions.
Got it okay and Mike.
And you talked about the variability of weird could end up into 'twenty and 'twenty, one range based on theaters paying or not paying.
And how much of the for 4 million reserves is tied to theaters just ballpark.
Yeah, I would I would say two thirds of it Mike.
I think the best way and the best way to think about it is the clean number for the fourth quarter and ex any prior period adjustments for bad debt and abatements was about $3 7 million. If there is no change and that number throughout 2021 that would bring it to the.
For the low end of the guidance for the 77 to 87 and if there was improvement which is our expectation.
And the theater business, especially given the visibility we have and the conversations we have especially with with Regal They will reopen and the spring.
And we will begin to give it back to the days of contract rent.
But those collections will improve over time, and thereby reducing our bad debt expectations.
Got it okay. Thank you.
You bet Mike.
Thank you. Our next question is coming from the line of Linda Tsai with Jefferies. Please proceed with your question.
Hi, and terms of the acquisitions to the extent you're targeting high growth high return markets.
Of note and Miami, Charlotte and Richmond Phoenix.
Orlando, how has pricing changed since pre Covid and are you seeing more assets come to market.
We have seen much more come.
Come to market, Linda and a lot of that is <unk>.
Talking with I.
Like I said, whether it's private buyers or institutions.
Directly.
I think pricing.
Hasnt from a cap rate hasnt changed much NOI has and some of these centers not all.
But we really are really focused on.
Assets with the under market rent assets that maybe have been mismanaged assets, where we could have a redevelopment.
Assets, potentially where we might have a grocer or a home improvement or a wholesale club and our back pocket.
And can go buy a power center.
With doing that deal and due diligence right. So we're very.
Tenant focused.
Demand focused.
IRR focused and.
And really focused in on those types of markets, which you saw you know I can tell you we spend a ton of time and Austin and Lake Hills has been a homerun acquisition for the company, we have love Miami, We Love Orlando, We love Tampa.
We are seeing some tremendous opportunities and I've spent some time and Boston and love, what's going on there with especially life science, and we see that and some macro <unk>.
Trend that will.
And just greatly.
And you did well and we will never leave and just will be and just a great investment opportunity and that city.
Thank you that's it for me thanks.
Thanks Linda.
Thank you and it appears we have no additional questions at this time, so I'd like to pass the floor back over to Mr. Harper for closing comments.
Thank you everybody and I really appreciate all the questions.
The pandemic has accelerated many trends and retail that were already underway.
As an owner of retail real estate. It is imperative for us to adapt quickly to the rapidly evolving environment.
I do believe our focus on strategically thinking about where the future of retail is heading.
And our private equity like value creation mindset.
We'll set RPT apart from a crowded and shopping center universe and put us at the forefront of the retail evolution.
Thank you all for joining this call and we.
Look forward to speaking with many of you on the virtual conference Circuit and the next few weeks have a wonderful day.
Ladies and gentlemen, this does conclude today's teleconference. Once again, we thank you for your participation and you may disconnect your lines at this time.
Yeah.
Yeah.